Speedier, more reliable cell service would be a boon for emerging regions' small businesses in particular, Qualcomm said. The 4G connectivity provides better service to process financial transactions, for example. The system also lets feature-phone batteries stay charged for multiple days, which is important for customers who don't always have access to a reliable power source. And faster download speeds allow users to watch on-demand video.

The new platform, called 205, is available now. But Qualcomm(QCOM) said 205-powered devices will begin to launch during the second quarter of this year.

Qualcomm said it expects phones with the new chips to cost less than about $50 on average -- 2G feature phones currently sell for as little as $15, by comparison -- but device manufacturers could choose to sell them for even cheaper.

It's been a busy few weeks for news in the feature-phone space. Last month Nokia relaunched the 3310 phone, which was a hit in the 2000s. The new version of the 3310 is not meant to compete with smartphones -- like many modern feature phones, it's instead aimed at customers who can't afford advanced devices.